Have passive funds had their day?

dealyboy

Hi Linton ...

Linton said:

dealyboy said:

My skin is HSBC Global Strategy, an even mix of Dynamic and Balanced, with a 7-year outlook. I'm sticking but should I twist?

In principle that looks like a sensible portfolio.  In my view current conditions are irrelevent if you invest so broadly. Any change could well be for the worse.  However one could question whether it is too high a risk with such a short duration.  Is the 7 year timescale seriously important?

It was originally 10 or 11 years, but although I am an official OAP of some two years standing and I am retired, I'm not touching my pot if I can help it until I'm 75.

I have my state pension and extra state pension from having deferred, plus £15k as an emergency fund. I own a small park home and car and my biggest expenditure is on my cat(s) and whisky. I am managing well with no major health issues (touch wood) and I am quite mean (or is the word 'frugal' or an 'MSE').

So as I've said I'm retired but I'm looking at 75 as my future 'real' 'its-my-life and I'll live it as I want to' age, hopefully not pouring my pot into a care home. Comments are welcome ... now don't start

BTW I've always found your posts helpful.

dealyboy

Hi Dunstonh ...

dunstonh said:

dealyboy said:

My skin is HSBC Global Strategy, an even mix of Dynamic and Balanced, with a 7-year outlook. I'm sticking but should I twist?

Why would you change it?

The article is about a portfolio of passive funds with management decisions and, if I speed read it correctly, a lazy portfolio.

The performance of that  portfolio is down to the asset mix and not the fact it is passive.   Its heavier in EM than most people would have,  it has property share which most dont bother with nowadays, index linked gilts, again, not used much, and gilts, which most will have - all areas that have not been having a good period and is light in UK equity, which was the best area.   In other words, the management decisions on this portfolio didnt pay off in 2022.   In another year it could be that those are the best areas.  They just happened to not be in 2022.

Good points, well made and indeed although he/she is clearly disappointed they are honest and has done well before.

We all need to be open to learn lessons and to be informed by others as I have so often been by you.

BTW I never saw you and the now long gone 'Son Of' on the same page, could it be? no.

dealyboy

Thanks Reg ...

Reg_Smeeton said:

I’ve been following the Slow and Steady series for a few years, I didn’t think there was any real pessimism in the post, beyond that 2022 was a poor year, as you’d expect from time to time. 

The other posts above re: asset mix, management decisions etc are all perfectly fine debates, but I still think the overarching theme of the Slow and Steady portfolio was and continues to be the timeless advice such as invest regularly, keep costs low, avoid chopping and changing etc

I think disappointment and a concern for the future but with some hope, so maybe 'pessimism' was misdirected.

... and I think you're right ... the themes and values that have consistently been expressed over the years are wise words.

EthicsGradient

dealyboy said:

Hi Linton ...

Linton said:

dealyboy said:

My skin is HSBC Global Strategy, an even mix of Dynamic and Balanced, with a 7-year outlook. I'm sticking but should I twist?

In principle that looks like a sensible portfolio.  In my view current conditions are irrelevent if you invest so broadly. Any change could well be for the worse.  However one could question whether it is too high a risk with such a short duration.  Is the 7 year timescale seriously important?

It was originally 10 or 11 years, but although I am an official OAP of some two years standing and I am retired, I'm not touching my pot if I can help it until I'm 75.

I have my state pension and extra state pension from having deferred, plus £15k as an emergency fund. I own a small park home and car and my biggest expenditure is on my cat(s) and whisky. I am managing well with no major health issues (touch wood) and I am quite mean (or is the word 'frugal' or an 'MSE').

So as I've said I'm retired but I'm looking at 75 as my future 'real' 'its-my-life and I'll live it as I want to' age, hopefully not pouring my pot into a care home. Comments are welcome ... now don't start

BTW I've always found your posts helpful.

That qualifies you well to be the Ruler of the Universe!

https://www.bbc.co.uk/programmes/profiles/RPVK2VZqX2qv6tQPTsLchK/man-in-the-shack

ChilliBob

I think Monevator would still massively be pro passive funds.

I have a mix of passive and active funds, thankfully mostly passive, as these have done better than most of the actives I hold. 

As above, it's where you invest as opposed to the management style. However, as the trex calculator will show you, fees do make a big difference. So, passive global tracker, vs 'closet' active tracker is an easy decision, performance may be similar, but fees are probably triple. 

dealyboy

Hi EG ...

EthicsGradient said:

dealyboy said:

Hi Linton ...

Linton said:

dealyboy said:

My skin is HSBC Global Strategy, an even mix of Dynamic and Balanced, with a 7-year outlook. I'm sticking but should I twist?

In principle that looks like a sensible portfolio.  In my view current conditions are irrelevent if you invest so broadly. Any change could well be for the worse.  However one could question whether it is too high a risk with such a short duration.  Is the 7 year timescale seriously important?

It was originally 10 or 11 years, but although I am an official OAP of some two years standing and I am retired, I'm not touching my pot if I can help it until I'm 75.

I have my state pension and extra state pension from having deferred, plus £15k as an emergency fund. I own a small park home and car and my biggest expenditure is on my cat(s) and whisky. I am managing well with no major health issues (touch wood) and I am quite mean (or is the word 'frugal' or an 'MSE').

So as I've said I'm retired but I'm looking at 75 as my future 'real' 'its-my-life and I'll live it as I want to' age, hopefully not pouring my pot into a care home. Comments are welcome ... now don't start

BTW I've always found your posts helpful.

That qualifies you well to be the Ruler of the Universe!

https://www.bbc.co.uk/programmes/profiles/RPVK2VZqX2qv6tQPTsLchK/man-in-the-shack

... and would you believe it he looks just like me (not the cat) and I cooked fish for my 'other' earlier (practically the only thing that he'll eat) ... and I often wonder where the time goes.

The only difference is that garden is tidier than mine.

dealyboy

... from Monevator ...

• kayJanuary 5, 2023, 8:04 pm

  You have hit the big time – under the title Have Passive Funds had Their Day you now have your own thread on MSE savings forum
• 23The AccumulatorJanuary 6, 2023, 1:46 pm

  @ Kay – haha. Thank you for the link. Happy to see it’s not entitled: “Have Passive Fund Writers had Their Day”